Moody's has also assigned a Baa3 senior unsecured rating to the proposed
bonds to be issued by Sino-Ocean Land Treasure Finance I Limited,
a wholly-owned subsidiary of Sino-Ocean Land, based
on the unconditional and irrevocable guarantee of Sino-Ocean Land.

The ratings outlook is stable.

The bond proceeds will be used for repayment of existing indebtedness
and for general corporate purposes.

RATINGS RATIONALE

"Sino-Ocean Land's Baa3 issuer rating reflects its standalone
credit strength and a two-notch rating uplift, based on expected
strong support from China Life Insurance Co Ltd. (financial strength
A1 stable), its largest shareholder with a 29% equity stake,"
says Franco Leung, a Moody's Vice President and Senior Analyst.

"Sino-Ocean Land's standalone credit profile reflects its
long operating history in the property sector since 1993 --
with leading positions in its core markets, such as Beijing and
Pan-Bohai Rim Region -- and its prudent expansion
strategy," says Leung, who is also Moody's Lead Analyst for
Sino-Ocean Land.

Sino-Ocean Land has established a strong brand name and is one
of the top developers in some of its core cities.

Its contracted sales in 2013 totalled RMB35.8 billion, thereby
placing it among the top 15 Chinese property developers in Moody's
rated portfolio.

Despite having a sizable land bank that is fairly diversified geographically,
the company has managed its growth risks prudently over the past 2-3
years, against a backdrop of challenges such as the high costs for
land.

Consequently, the company has developed a disciplined approach to
business expansion.

"Its mass-market-focused strategy, supported
by its diversified products offering and the increasing recurring revenue
contribution from its investment property portfolio, will offer
stability to its operating performance," says Leung.

While the company's residential property development business has
expanded more rapidly than its commercial property business in recent
years, it enjoys diversity in its product offerings. Commercial
properties (including car parks) constituted about 17% of its total
contracted sales for FY2013.

In addition, Sino-Ocean Land receives rental income from
its investment property portfolio which had total revenue of around RMB550
million in 2013. Moody's expects the recurring income from
its investment property portfolio to rise over the next few years,
which will enhance the stability of its operating cash flows and interest
coverage.

"The standalone credit strength also reflects Sino-Ocean Land's
good access to funding, which will support its long-term
development," adds Leung.

Given Sino-Ocean Land's relatively long listing history,
when compared with many of its domestic peers, it has developed
good access to the offshore capital markets and offshore bank financing.

"On the other hand, the company's standalone credit
strength is constrained by its moderate profitability and interest coverage,"
says Leung.

Sino-Ocean Land's profit margins declined during 2011-2013.
Although the declining trend is in line with many of its domestic peers,
its gross profit margin of about 24.3% in 2013 is relatively
low, and is reflective of the company's strategy of increasing
its focus on the mass-market segment and expanding into new regions
over the past few years.

Interest coverage -- as measured by adjusted EBITDA/interest --
is relatively weak, standing at around 2.2x in 2013.
However, Moody's expects it to improve to 2.5x -3.0x
over the next 1-2 years, resulting from higher revenue recognition,
while gross profit margins will stabilize at current levels.

While China Life owns 29% of Sino-Ocean Land, the
latter is an integral part of China Life's long-term real
estate investment strategic plans.

The two notches of ratings uplift reflect Moody's expectation that China
Life will extend support to Sino-Ocean Land, considering:
(1) China Life has a track record of providing financial support to Sino-Ocean
Land; (2) Sino-Ocean Land is China Life's sole strategic
equity investment in the real estate sector; and (3) China Life is
expected to increase real estate development cooperation with Sino-Ocean
Land, leveraging on its design, operations and market knowledge.

Moody's has not notched the issuer rating to reflect subordination
risk, even with operating company debt amounting to around 21%
of consolidated assets at end-2013. This approach reflects
Moody's expectation that the company will continue to increase the
portion of offshore debt to total debt, such that this ratio will
trend below 15% over the next two years.

The stable outlook reflects Moody's expectations that Sino-Ocean
Land will continue to prudently manage its expansion and maintain the
stability of its credit profile. It also incorporates Moody's
expectation that China Life will remain as the company's largest
shareholder.

Upward rating pressure could emerge if the company: (1) consistently
meets its sales targets and continues to implement its disciplined approach
to acquiring land and managing its financial profile; (2) maintains
stable profitability through business cycles; and/or (3) improves
its credit metrics, such that adjusted EBITDA/interest coverage
rises above 3.5x and revenue/debt above 110% on a sustained
basis.

Downward rating pressure could emerge if (1) it persistently delivers
lower-than-expected contracted sales growth; (2) profit
margins come under further pressure, which would in turn drive interest
coverage below 2-2.5x; and/or (3) the company engages
in material debt-funded acquisitions, such that revenue/debt
drops below 80-90% on a sustained basis.

Any evidence of a reduction in ownership or weakening in the support from
China Life, or a deterioration in China Life's own credit profile,
could also be negative for the ratings.

The principal methodology used in this rating was the Global Homebuilding
Industry published in March 2009. Please see the Credit Policy
page on www.moodys.com for a copy of this methodology.

Sino-Ocean Land is one of the leading property developers in Beijing
and the Pan-Bohai Rim Region. It focuses on developing mid-to-high-end
residential properties, office premises and retail properties.
At end-2013, it had a land bank of about 21.35 million
square meters with over 50 development projects in 19 cities in China.

The Beijing-based company was listed on the Hong Kong Stock Exchange
in September 2007. China Life Insurance Co Ltd. (A1 stable)
and Nan Fung International Holdings Limited (Baa3 stable) are the largest
and second largest shareholders of Sino-Ocean Land, with
respective 29% and 21% equity stakes at end-2013.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt,
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